July 2024

Reassessing the Case for Central Clearing of Bonds and Repos in Australia: Consultation

In July 2024, the Council of Financial Regulators (CFR) released a consultation paper: Reassessing the Case for Central Clearing of Bonds and Repos in Australia

There have been considerable changes in the size and structure of the Australian bond and repo markets in recent years. Recent analysis by Reserve Bank of Australia (RBA) staff indicates that the potential benefits of central clearing in these markets has increased, and that the case for central clearing may be stronger than previously assessed.

As such, the CFR is seeking feedback from stakeholders on the magnitude of any costs and benefits that may accrue from the introduction of a central counterparty in the Australian bond and repo markets. Feedback is also sought from stakeholders to understand the circumstances under which a bond and repo CCP could be operated safely and efficiently by an overseas operator and what additional protections may be required for Australian bond and repo markets. The CFR is not considering any other policy proposals as part of this consultation, such as the introduction of a clearing mandate.

Written submissions to the consultation paper closed on 4 September 2025. The CFR received 22 submissions.

For further details, please see the CFR consultation paper: Reassessing the Case for Central Clearing of Bonds and Repos in Australia

In March 2025, the CFR published the report Reassessing the Case for Central Clearing of Bonds and Repos in Australia: Response to Consultation.

Submissions Received

22 submissions were received for this consultation, including 6 confidential submissions. The non-confidential submissions are published below:

Asia Securities Industry & Financial Markets Association
13 September 2024

Australian Custodial Services Association
6 September 2024

Australian Financial Markets Association
13 September 2024

Australian Securities Exchange
4 September 2024

Australian Securitisation Forum
13 September 2024

Carole Comerton-Forde
2 September 2024

Commonwealth Bank of Australia
30 August 2024

Depository Trust & Clearing Corporation
3 September 2024

Euroclear
6 September 2024

Imperium Markets
4 September 2024

International Swaps and Derivatives Association
4 September 2024

James Brugler
4 September 2024

National Australia Bank
4 September 2024

Rand Low and Terry Marsh
3 September 2024

Shumi Akhtar
2 September 2024

Zodia Custody
3 September 2024